Saudi boost oil exports amid OPEC uncertainties

Saudi Arabia want an OPEC stance to be decided before striking a deal with non-OPEC producing countries as Septembers export figures show KSA boosted exports by over 500,000 bpd

The Joint Organizations Data Initiative (JODI) released the export data for Saudi Arabia on 24 November, as well as the rest of the OPEC members, saying that the KSA exported 7.81mbpd in September 2016, a rise of 507,000 bpd against August.

One of the main reasons for the increase is that the cooler temperature in Saudi Arabia in September over August meant that that the use of crude for air conditioning fell from 739,000bpd to 490,000bpd.

“Although the kingdom's production was steady, domestic use for power generation and desalination went down and exports went up,” Sadad al-Husseini, a former Saudi Aramco senior executive and energy consultant told Reuters.

However, among the backdrop of the continuing oil price, there have been plans to discuss the contribution that oil producing countries that are not part of OPEC can part in an effort to make a supply limiting agreement. This meeting was meant to take place in Vienna today (28 November).

However, OPEC sources said on 25 November that Saudi Arabia would not be in attendance. The general consensus is that Saudi Arabia are keen to come to an agreement between the OPEC countries before taking an approach to the rest of the non-OPEC countries.

There are also hints that this Saudi export figure may be a sign of strength in defiance of comments made by United States President-elect Donald Trump, who has said that he wants to make America energy independent from 'foes and oil cartels.' Energy ministers Khalid al-Falih retorted by stating that 'oil was one side of the free trade coin,' as reported in iexpats.